Geox in France

1
Geox in France

• Best in France Case Study
• 13th December 2005
• By Christian Brands and Robert Relph

2
Executive Overview

• Company Overview
• Products
• Clients
• Why did Geox come to France?
• French Values
• Constraints in France
• Key Benefits of doing business in France
• How to adapt to France
• Essential Advice
• Credits

3
Geox Overview

• Founded in 1990, entering France in 1997
• Footwear retailer in 68 countries.
• Patented technology delivers comfort and health
  benefits.
• Net revenues 2004 340.1M , EBIT 72.6M, mostly
  generated outside Italy.
• Leading footwear brand in Italy and 4th in the
  world (Source Shoeintelligence)

4
Products

• Product manufactured in Eastern Europe, Asia and
  South America
• Geox Plants (20 of production)
• Outsourced operations (80 of production)
• Not made in developed countries due to labour
  costs
• Materials bought in Italy

5
Clients
French Client Make-up

• In France balanced customer make-up
• 322 stores selling Geox exclusively worldwide
• Target Customer Medium-High Income and well
  educated
• Customer profile in France is similar to other
  countries
• Expectations of comfort and quality

6
Why did Geox come to France?

• Part of international expansion plan
• Association with fashion
• 2 companies
• Geox Retail France
• Geox France Sarl.
• Great consumer potential
• Sees France solely as a sales country

7
French Values

• Established a sales team in France to understand
  the French culture
• Integrated people into the country to gain a
  greater market understanding
• Only hired people who are convinced of Geoxs
  values
• Staff Training
• Geox feel this integration approach has been
  successful

8
Constraints in France

• HR Costs comparable to those of other European
  countries
• No particular organizational structure costs
• Some language and infrastructure (network) costs
• Size of the country makes effective distribution
  difficult
• Geox was aware of the French culture before
  starting business activities

9
Key Benefits

• Great Consumer potential
• Very positive feedback from current consumers
• Mono brand franchise expansion
• Very high rate of productivity per employee
• Government assistance Italian side
• Image benefit Being present in Paris
• General Impression Very satisfied with the
  French market

10
Adapting to France

• People Management system
• Recruitment French employees
• Compensation base salary plus commission based
  on percentage of sales
• Workforce planning no current expansion
• Motivation Convince employees of the Geox
  culture
• Training done through schemes material
  developed in the head office
• Infrastructure issues
• Not a step-change same currency similar culture

11
Geoxs Essential Advice

• Not specifically for France, however
• Need significant up front investment
• Need good people, particularly good sales people
• Need to communicate benefits to the customer
• Inevitable understanding the culture
• These were simple but key factors

12
With thanks to

• Eros Scattolin, International Communications
  Manager
• GEOX S.p.A. Via Feltrina Centro 16, 31030
  Biadene di Montebelluna (TV) - Italia.
• eros.scattolin_at_geox.com
• 39 0423 282541
• Luciano Santel, Chief Financial Officer
• GEOX S.p.A. Via Feltrina Centro 16, 31030
  Biadene di Montebelluna (TV) - Italia.
• luciano.santel_at_geox.com

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Bibliography

• www.geox.biz
• Amadeus Company Database
• Geox 2004 Company report
• Interviews with Geox Executives
• Dickey, C. (2005) Your Sole Provider, Newsweek,
  01/10/2005, Vol. 145, Issue 2, p60-60.
• Anonymous (2004) The Ferrari of footwear,
  Economist, 03/13/2004, Vol. 370, Issue 8366, p65.
  
• Hoppough, S (2004) Flat-Footed, Forbes,
  11/29/2004, Vol. 174, Issue 11, p82-84

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Additional Information

• For questionnaire and transcription see
  supplementary documents
• Team Details
• Robert Relph
• Wychwood, Rectory Meadow, Litcham, Norfolk PE32
  2NR, United Kingdom
• r.relph_at_lancs.ac.uk
• Christian Brands
• Roggenweg 18
• 50933 Cologne
• Germany
• christianbrands_at_hotmail.com

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End

• Thank you very much for your attention!